India, US Sign Agreement For Defence Equipment Supply

An agreement, known as Security of Supplies Arrangement (SOSA), has been inked between the US and Indian defence ministries. This will allow both countries to provide reciprocal priority support for goods and services that bolster national defense. The agreement was signed during Defence Minister Rajnath Singh’s four-day trip to the US.

After arriving in Washington on Thursday, Rajnath engaged with the Indian diaspora and highlighted the strong partnership between India and the US. The Pentagon announced on Friday that on August 22, 2024, a non-binding Security of Supply Arrangement (SOSA) was established between the US Department of Defense and the Ministry of Defence of India.

Additionally, a “Memorandum of Agreement on the Deployment of Liaison Officers” was drafted and signed by both countries. This will streamline the placement of one military officer from each nation within the other’s armed forces. Specifically, India will assign an officer to the US Special Operations Command located in Florida.

SOSA will facilitate the exchange of industrial resources between the two nations, helping them overcome unanticipated supply chain disruptions and meet their respective national security needs.

According to a statement from the Indian MoD in New Delhi, the SOSA was signed by Dr Vic Ramdass and Samir Kumar Sinha, who represented the additional secretary and director general (acquisitions).

Dr Vic Ramdass, the Pentagon’s principal deputy assistant secretary of defence, stated that this SOSA is a significant moment for the US-India Major Defence Partner relationship and will contribute to strengthening the US-India Defence Technology and Trade Initiative (DTTI).

The Pentagon has entered into agreements with 18 countries to ensure mutual supply of defence goods and services, including Australia, Canada, Denmark, Estonia, Finland, Israel, Italy, Japan, Latvia, Lithuania, the Netherlands, Norway, Republic of Korea, Singapore, Spain, Sweden and the UK. These bilateral arrangements allow for priority delivery of DoD contracts from companies in these nations and also permit priority delivery for contracts and orders with US firms upon request from signatory countries.

Given the US military’s expanding supply chain, SOSAs provide a crucial means for the DoD to enhance interoperability with its defense trade partners. These Arrangements serve as working groups that establish communication mechanisms and streamline processes, proactively addressing potential supply chain issues in times of peace, emergency, and conflict. Additionally, they serve as valuable tools for developing investment strategies to ensure both redundancy and security. “I am eagerly anticipating OUSD(A&S) hosting the next DTTI meeting this fall, as it will further strengthen cooperation between our respective defense industries and promote joint efforts in areas such as co-development, co-production, and co-sustainment,” stated the Pentagon. (Note: OUSD(A&S) refers to the Office of the Under Secretary of Defense for Acquisition and Sustainment.)

Within the framework of SOSA, both the US and India have pledged mutual assistance in fulfilling essential defense procurement orders. As part of this agreement, the US will provide reassurances through its Defense Priorities and Allocations System (DPAS). This will involve program evaluations by the Department of Defense and approval from the Department of Commerce (DoC).

In return, India will implement a government-industry Code of Conduct within its industrial sector. Here, Indian companies will willingly make all possible efforts to prioritize support for US requests.

Rajnath Singh credited Prime Minister Narendra Modi with elevating India’s status in the world. According to him, India’s voice was previously disregarded at global events, but now it holds significant weight and attracts attention from all corners of the world.

According to the defence minister, India was previously included in Morgan Stanley’s list of “Fragile Five” countries before 2014. However, it currently stands among the world’s top five economies known as the “Fabulous Five.”